New listings have been a source of fast gains for a multitude of coins and tokens. After waiting for months following ICOs, an addition to one of the crypto-only exchanges with high volumes is a major goal for blockchain startups.
Huobi, Binance, Upbit and OKEx have lifted new listings, sometimes dramatically. But the pumps are sometimes over before the wider audience of traders realizes - mostly triggered by bots that watch for the earliest signs of a listing.
One of those bots is @NewlyListedCoin, listening to Binance, KuCoin, Bittrex, Bithumb, Bitfinex, Okex, HuobiPro, HitBTC, GDAX, Poloniex, BitFlyer, Bitmex, Bitstamp, Gemini listings.
Other bots are advertised as exclusive paid offers through Discord channels.
https://twitter.com/CryptoZEDbots/status/1022264545820258304
The principle is to glean the upcoming listing from the exchange’s API, and tweet it for a fast reaction of new bidding. The effect is quite often that of a fast pump, and relies on asymmetric information.
Critics of the current system of exchanges see the flaw in the unfair advantage of centralized or semi-centralized projects. Older coins, which have been used for years, stand almost no chance of being listed, as ICO tokens make a concerted effort and are ready to pay exchange fees.
Hence, some of the older assets that are truly decentralized and have no known founder at the helm, or anyone in the position of a CEO, have difficulties with the listing:
https://twitter.com/WhalePanda/status/1022397533295964160
This means that newer, riskier assets may get listed first.
Exchange listing bots are not performing immediate trades, but Discord groups that offer premium content and signals from bots also offer links for immediate buying. Thus, the presence of listing bots could help toward sudden price spikes, and later trigger the activity of trading bots.
However, trading during a new listing may be extremely risky, as the tides turn suddenly and buying may dwindle. Some coins actually go on to lose positions and get dumped during the new listing. Trusting listing bots for trading decisions could be extremely risky, and while some coins grow to phenomenal positions, this often leads to losses. A safer way would be to use the listing information for selling, instead of buying up the asset.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.
This article appeared first on Cryptovest
